COMPANY LEGAL & LAW MATTERS

Judge rules that Krafton must rehire fired Subnautica director

A judge has ruled that publisher Krafton must reinstate Ted Gill as CEO of Unknown Worlds Entertainment, according to a report by Bloomberg. The company fired Gill and two other co-founders last year as part of a shakeup involving the long-anticipated sequel Subnautica 2. The Delaware judge said Krafton had violated the terms of its contract with Unknown Worlds when it fired the executives. "To remedy these breaches, Gill is reinstated as CEO of Unknown Worlds with full operational authority over the studio," wrote judge Lori W. Will. A Krafton spokesperson said in a statement that "we respectfully disagree with today's ruling" and that "we are evaluating our options as we determine our path forward." Further litigation over potential damages is still pending. This legal battle has been brewing for a while. Krafton bought Unknown Worlds back in 2021 and the contract stipulated that executives and staff would get to share in a $250 million bonus if they hit certain revenue targets by 2025. Those targets were not reached, and could not be reached, because Krafton delayed Subnautica 2. According to the pre-trial brief, Krafton CEO Changham Kim allegedly nixed the payout because it would be a "professional embarrassment" and make him look like a "pushover." He reportedly consulted ChatGPT to ask about ways to avoid paying the bonus and, oddly, seemed to consider a hostile takeover by a newly-formed entity. Judge Will dinged the CEO on both counts, saying that Kim regretted committing to the payout and "consulted an artificial intelligence chatbot to contrive a corporate 'takeover' strategy." Engadget reached out to Krafton and the company re-emphasized it was displeased with the ruling but said that it doesn't resolve the ongoing litigation. As for the game, Krafton says Subnautica 2 is coming sooner rather than later. We've heard that one before.This article originally appeared on Engadget at https://www.engadget.com/gaming/judge-rules-that-krafton-must-rehire-fired-subnautica-director-184702823.html?src=rss

By Engadget

• March 16, 2026 at 6:47 PM

Judge rules that Krafton must rehire fired Subnautica director Photo: Engadget

A judge has ruled that publisher Krafton must reinstate Ted Gill as CEO of Unknown Worlds Entertainment, according to a report by Bloomberg.

The company fired Gill and two other co-founders last year as part of a shakeup involving the long-anticipated sequel Subnautica 2.

The Delaware judge said Krafton had violated the terms of its contract with Unknown Worlds when it fired the executives.

"To remedy these breaches, Gill is reinstated as CEO of Unknown Worlds with full operational authority over the studio," wrote judge Lori W.

Will.

A Krafton spokesperson said in a statement that "we respectfully disagree with today's ruling" and that "we are evaluating our options as we determine our path forward." Further litigation over potential damages is still pending.

According to the pre-trial brief, Krafton CEO Changham Kim allegedly nixed the payout because it would be a "professional embarrassment" and make him look like a "pushover." He reportedly consulted ChatGPT to ask about ways to avoid paying the bonus and, oddly, seemed to consider a hostile takeover by a newly-formed entity.

Judge Will dinged the CEO on both counts, saying that Kim regretted committing to the payout and "consulted an artificial intelligence chatbot to contrive a corporate 'takeover' strategy." Engadget reached out to Krafton and the company re-emphasized it was displeased with the ruling but said that it doesn't resolve the ongoing litigation.

As for the game, Krafton says Subnautica 2 is coming sooner rather than later.

We've heard that one before.